Risk assumption is the best risk management tool when the change of loss is ________ and the potential severity of loss is ________.
A) low, low
B) high, high
C) low, high
D) high, low

Question

Quizplus · Accepted Answer

When the change of loss is low and the potential severity of loss is low, risk assumption is the best risk management tool. This means that the likelihood of a negative event occurring is minimal, and even if it does occur, the impact will not be significant enough to justify spending time and resources trying to manage it. It is therefore more cost-effective to simply accept the risk and move on.

Risk Assumption Is the Best Risk Management Tool When the Change